Canadian real estate and infrastructure investment firm Fengate Capital Management has agreed to acquire a 25% stake in San Juan Mesa, which operates a 120MW wind project in New Mexico, US.
With this acquisition, Fengate has made its first investment in the US. The deal is subject to approval from the Federal Energy Regulatory Commission (FERC).
San Juan Mesa is an operating wind project located near Elida. Clean electricity generated at the facility is sold to Southwestern Public Service Company, a subsidiary of Xcel Energy, under a power purchase agreement (PPA).
Fengate managing director of infrastructure for North America George Theodoropoulos said: "The investment in San Juan Mesa provides an opportunity for Fengate to invest in a fully contracted, brownfield asset with a strong operating record and establish a relationship with NRG, one of the largest operators of wind farms in the United States.
"It provides predictable, long-term cash-flows for our investors and extends Fengate’s robust portfolio of renewable energy projects into the US market."
A majority stake in San Juan Mesa is owned by an affiliate of NRG Energy, which oversees the project’s operations.
The company has already made investments in solar, hydro, and biomass projects in Canada and the UK.
Earlier this month, Fengate acquired an ownership stake in Worsley multi-fuel cogeneration (MFC) plant in Western Australia.
The 104MW Worsley MFC plant supplies steam and electricity to the Worsley Alumina refinery in Collie, Western Australia under a 25-year capacity purchase agreement.
Fengate owns the facility jointly with General Electric Unit, GE Energy Financial Services and funds managed by Whitehelm Capital.